Fashion chain Bardot lurches into voluntary administration

Tough retail trading conditions trigger collapse of fashion chain Bardot.

Tiki from The Models wearing neon fashion from Bardot and Myer. Picture: Matt Turner

The toughest retail trading conditions in decades have triggered the collapse of another fashion chain, with Bardot lurching into voluntary administration on Thursday to threaten the future of the 800 staff who work at the company across its head office in Melbourne and 72 stores nationwide.

KPMG executives Brendan Richards and Ryan Eagle were appointed voluntary administrators of womenswear retailer Bardot and although the appointment is still only hours old, the administrators and Bardot’s chief executive Basil Artemides, have already identified some issues at the business which had dented its profitability including the cut-throat nature of the Australian retail sector where discounting and promotions are pinching margins.

Bardot operates 72 stores across all Australian states and territories and employs 800 staff. Bardot was established in 1996 with Bardot Junior launching in 2004. Bardot’s head office is based in Abbotsford, Melbourne.

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Brendan Richards, Restructuring Services Partner, KPMG Australia said: “We are at the very start of the process, so many questions are yet to be answered. However, I can confirm that Bardot store trading will continue on a business-as-usual basis while we undertake an immediate assessment of the business. Both gift cards and credit notes will also be honoured on a dollar-for-dollar basis for the foreseeable future.

“Bardot is an iconic Australian womenswear brand with a rich history of over 20 years of growth. In the past five years, the business has grown significantly offshore and capitalised on its Australian heritage by distributing through high profile international department stores.

“Although the company has experienced significant growth in overseas markets, it has faced a challenging domestic environment in recent times. We expect strong interest in the sale/recapitalisation process,” he added.

Impact on the team

Bardot CEO Mr Artemides laid some of the blame at the heavy discounting within the retail sector.

“Despite double-digit growth in online sales, and our highly successful expansion into the US and Europe, Bardot’s retail stores in Australia are competing in a highly cluttered, and increasingly discount-driven market. Operating a national retail network in its current state is no longer sustainable.

“We have appointed administrators KPMG to lead a company-wide restructure, which will enable us to re-define local market presence; ensuring that Australia is, and will always remain, the heart of the Bardot business.

“We acknowledge the potential impact that these changes may have on our team members and remain committed to open and timely communication with our stakeholders as KPMG undertakes its assessment,” Mr Artemides added.

The administrators have appointed Deloitte Corporate Finance to undertake the sale and/or recapitalisation process.

Bardot is the latest in a long line of recent retail failures, mostly fashion chains, which includes Oroton Group, Dick Smith, Pumpkin Patch, Payless Shoes, Howards Storage World, Roger David, Rhodes & Beckett, Herringbone, David Lawrence, Marcs, Topshop/Topman and Maggie T.